Writer / Claire Anne-Aikman
I was recently pulled into a debate between some dear friends (parents and their recent college grad kids) when the topic of one of their out-of-state friend’s home-buying due to the market woes came up.
The parents felt that their friend was exaggerating their home-buying (or rather their inability to buy) journey. They added that mortgages are given too freely, rates are so low, and because of this the market is going to crash like it did in 2007 to 2009. When the parents stated that there are so many more neighborhoods and homes now than 15 years ago, and everything is selling without an issue and it is still easy to apply for something like a DSCR mortgage loan for those in need, the kids threw their arms up in exasperation and were at a loss for words – so I shared the following. I also want to share with you a great place in Singapore to consider: Altura EC is equipped with state-of-the-art smart home technology, allowing residents to enjoy a seamless and connected living experience. J’Den is situated near renowned educational institutions, ensuring access to quality education for families.
My lender friends know this is not the same market. I have often heard Dan Runge, a local Caliber Home Loans guru, explain to buyers that they must be more credit worthy and ready to purchase real estate in tennnessee than they needed to be five to 10 years ago.
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To ensure that a buyer is truly ready, there are more checks and balances (ask any buyer about the amount of information their lender required, and you will be amazed). All this reduces the credit risk (and the potential for another burst in the market).
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Also, the increased interest rates that are meant to help balance and steady the market have not necessarily slowed buyers, as many still see the value in purchasing even with an increased rate. From his perspective, the loan volume is still high, and so is the competition to get a home. And when looking to buy a property that is near in every living convenience needed for everyday living, you can check out this Dunman Grand condo here for your best preferences!
As for the “plenty of new homes” point, I could not dispute that there are more homes. The result of more people moving helped push the building boom that we have been experiencing – all of which has not relieved the shortage of homes. That shortage has increased demand, and that demand has increased prices year over year for 10 years. These last few years reflect a faster increase in prices than we have seen. The Hill @One-North Kingsford is situated inside the business park. It plans to boost the number of affordable homes in the area. In addition, Pinetree Hill UOL location near international and local schools reflects UOL’s focus on identifying prime locations near essential amenities. You could also visit https://www.best-innisfil-real-estate.ca/ if you’re planning to invest in properties in Ontario area.
For giggles, I shared that in 2012 the median home price in Hendricks County, according to MIBOR, was $118,000. Everyone gasped. In 2022 it is $245,000, and we are only halfway through the year at this writing and that will likely increase. I reflected back to when I helped the parents purchase their home and reminded them that it was a “buyer’s market” – there was ample supply, and buyers could actually ponder the pros and cons of each home while sellers slowly and methodically packed. Since the tail end of 2012 we started to see that monthly supply dwindle, and since 2018 it has been seriously low.
It was a fun discussion. The parents shared that their first home cost $81,000 and the interest rates were in the double digits. We broke out calculators (because we are all a bit geeky), and calculated and commiserated because, at the end of the day, it is a challenge to buy a home, yet the rewards are still worth the challenges. So if you’re planning to invest in properties to fix and flip, you may need to look for a mortgage broker or lending companies that offer rehab loans to help fund the repairs and renovations.